Royal Bank Of Canada Cuts Rocket Companies (NYSE:RKT) Price Target to $15.00

Key Points

• Royal Bank of Canada cut Rocket Companies’ price target from $20 to $15 while maintaining a “sector perform” rating, implying about 10% upside from the prior close. The broader analyst consensus remains “Moderate Buy” with a $19.87 target.
• Rocket’s latest quarter showed strong growth: revenue rose 91.9% year over year to $2.76 billion and EPS of $0.16 matched estimates, but revenue missed expectations and the company’s third-quarter outlook of $2.5 billion–$2.7 billion came in below consensus.
• Shares rose 3.1% to $13.63, though the stock remains well below its 52-week high of $24.36. Analysts cited elevated mortgage rates, weaker housing demand and continued near-term uncertainty despite improved earnings and market-share gains.

Rocket Companies (NYSE:RKT - Get Free Report) had its price target dropped by analysts at Royal Bank Of Canada from $20.00 to $15.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has a "sector perform" rating on the stock. Royal Bank Of Canada's price objective would indicate a potential upside of 10.04% from the company's previous close.

A number of other analysts have also commented on RKT. Wells Fargo & Company cut their price objective on shares of Rocket Companies from $17.00 to $15.00 and set an "equal weight" rating on the stock in a research report on Friday. Benchmark cut their price target on shares of Rocket Companies from $21.00 to $19.00 and set a "buy" rating on the stock in a research report on Friday. Barclays reduced their price objective on shares of Rocket Companies from $19.00 to $17.00 and set an "overweight" rating for the company in a research note on Tuesday, July 7th. Morgan Stanley upgraded Rocket Companies from an "equal weight" rating to an "overweight" rating and raised their price objective for the company from $18.00 to $19.00 in a report on Thursday, July 16th. Finally, BTIG Research reiterated a "neutral" rating on shares of Rocket Companies in a report on Tuesday, June 16th. Ten equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, Rocket Companies presently has a consensus rating of "Moderate Buy" and a consensus target price of $19.87.

Rocket Companies Stock Up 3.1%

Shares of NYSE:RKT traded up $0.41 during mid-day trading on Friday, reaching $13.63. 41,116,701 shares of the stock were exchanged, compared to its average volume of 29,226,092. The company has a quick ratio of 4.37, a current ratio of 4.37 and a debt-to-equity ratio of 1.13. The company has a market cap of $38.57 billion, a P/E ratio of 272.62 and a beta of 2.19. Rocket Companies has a one year low of $12.17 and a one year high of $24.36. The stock's 50 day simple moving average is $14.02 and its 200-day simple moving average is $15.48.

Rocket Companies (NYSE:RKT - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.16 EPS for the quarter, meeting the consensus estimate of $0.16. Rocket Companies had a return on equity of 4.30% and a net margin of 2.78%.The firm had revenue of $2.76 billion for the quarter, compared to analysts' expectations of $2.81 billion. During the same quarter in the previous year, the business posted $0.04 EPS. The business's quarterly revenue was up 91.9% compared to the same quarter last year. As a group, equities research analysts predict that Rocket Companies will post 0.54 EPS for the current year.

Institutional Trading of Rocket Companies

Several institutional investors and hedge funds have recently added to or reduced their stakes in RKT. Royal Bank of Canada grew its position in shares of Rocket Companies by 48.9% in the 1st quarter. Royal Bank of Canada now owns 69,641 shares of the company's stock valued at $841,000 after acquiring an additional 22,861 shares during the period. Amundi lifted its stake in Rocket Companies by 3.1% in the 1st quarter. Amundi now owns 33,416 shares of the company's stock valued at $403,000 after purchasing an additional 997 shares during the last quarter. AQR Capital Management LLC lifted its stake in Rocket Companies by 1,086.5% in the 1st quarter. AQR Capital Management LLC now owns 400,467 shares of the company's stock valued at $4,734,000 after purchasing an additional 366,716 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Rocket Companies by 12.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 370,619 shares of the company's stock worth $4,473,000 after purchasing an additional 40,326 shares during the period. Finally, Creative Planning grew its holdings in Rocket Companies by 17.2% during the second quarter. Creative Planning now owns 18,215 shares of the company's stock worth $258,000 after purchasing an additional 2,679 shares during the period. 4.59% of the stock is owned by institutional investors.

Key Headlines Impacting Rocket Companies

Here are the key news stories impacting Rocket Companies this week:

• Positive Sentiment: Rocket reported second-quarter adjusted revenue of $2.76 billion and GAAP net income of $229 million, while adjusted net income reached $441 million. EPS of $0.16 matched estimates and increased from $0.04 a year earlier. Record mortgage-market-share gains and improved efficiency from artificial intelligence provided additional support. Rocket Companies Announces Second Quarter 2026 Results
• Positive Sentiment: Benchmark maintained a “buy” rating, while Stephens retained an “overweight” rating. Although both firms reduced their price targets, their revised targets of $19 and $20 still imply substantial potential upside for RKT. Benzinga analyst updates
• Neutral Sentiment: JPMorgan lowered its target to $14 and adopted a “neutral” rating, while Wells Fargo cut its target to $15 and kept an “equal weight” rating. These revisions indicate limited near-term conviction despite targets remaining above the recent trading level. Benzinga analyst updates
• Neutral Sentiment: Unusually large options activity was reported in Rocket Companies shares, potentially signaling increased institutional interest or hedging, but the directional impact is unclear. Rocket Companies Target of Unusually Large Options Trading
• Negative Sentiment: Revenue fell short of consensus expectations of $2.81 billion, even though it surged 91.9% year over year. The miss, combined with reports that record earnings trailed expectations on key metrics, has weighed on the stock. RKT Q2 Earnings Match, Revenues Miss Amid Housing Weakness
• Negative Sentiment: Rocket guided for third-quarter revenue of $2.5 billion to $2.7 billion, below the roughly $2.9 billion analyst consensus. The outlook reflects continued pressure from elevated mortgage rates and weaker housing demand. Redfin Reports Pending Home Sales Sink to a Five-Month Low

Rocket Companies Company Profile

Rocket Companies, Inc is a Detroit-based holding company whose businesses are centered on digital mortgage origination and related consumer finance and real estate services. The company grew out of the Quicken Loans franchise and completed an initial public offering in 2020. Founder Dan Gilbert remains a prominent figure associated with the firm, which operates a suite of brands that aim to simplify the home financing and buying experience through technology and scale.

The company's core activity is mortgage lending through its Rocket Mortgage platform, which offers online application, underwriting and servicing for home purchase and refinance loans.

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